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What legal steps do I need to take to start a small business in Illinois?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Illinois, there are several legal steps you need to follow. Here is a list of the most important ones:

  1. Choose a business structure: The first step you need to take is to choose a business structure for your company. The most common structures include sole proprietorship, partnership, LLC, and corporation. Each structure has its own legal requirements and tax implications, so it is important to choose the right one for your business.
  2. Register your business: Once you have chosen a business structure, you need to register your business with the Illinois Secretary of State. You will need to submit articles of incorporation or organization depending on the chosen business structure. Additionally, obtaining a Federal Employer Identification Number from the IRS is necessary for tax purposes.
  3. Obtain licenses and permits: Depending on your business type, there may be certain licenses and permits you need to obtain. You will need to check with the Illinois Department of Revenue for tax registrations, the Illinois Department of Financial and Professional Regulation for industry-specific licenses, and your local city or county for any additional licenses or permits.
  4. Open a business bank account: It is recommended to keep business finances separate from personal finances, opening a separate business bank account is essential.
  5. Comply with employment laws: If you plan to hire employees, you need to comply with employment laws in Illinois. This includes obtaining worker's compensation insurance and adhering to labor laws.
  6. Pay taxes: Your business may be required to pay federal, state, and local taxes. To comply with tax laws, you need to obtain necessary tax registrations and permits.

It is important to consult with an experienced attorney or consult an official government source on completing the required legal steps for starting a small business in Illinois. Failure to comply with all legal requirements and regulations may result in penalties or legal action being taken against your business.